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The Honolulu Advertiser

Posted on: Monday, June 6, 2005

EDITORIAL
A 'wired' Hawai'i needs competition

The approach of new competition in the field of broadband Internet service in the Islands is good news, with favorable prospects that consumers will see lower Internet access prices.

But it's too early to celebrate.

Clearwire Corp., the newcomer from Kirkland, Wash., has only begun assembling its Honolulu workforce. And in order to succeed, it must find the right price point that's low enough to lure customers away from their accustomed DSL or cable hookup — that's no easy task — and high enough to turn a profit.

It's a marketing challenge that's tougher than it appears. For starters, Clearwire is described as a wireless service, and it is, from the standpoint that the signal is broadcast rather than transmitted on a phone line or cable. But it requires a modem to be connected to a computer, and at least the current version of the hardware must be plugged into an electric outlet.

So until an upgrade is developed that's self-contained, perhaps battery-powered, users can't pack up their laptop and take their connection on the road. That would be the ultimate selling point.

But even given those limitations, Clearwire would present a welcome third major option for customers wanting high-speed connections to the Net. Unlike the low-power wireless services that cater to subscribers in contained areas such as businesses and school and hotel campuses, Clearwire would be transmitting on a frequency that allows broadcasting at a higher power that enables more reliable connections.

That frequency comes under federal regulation and so far there seems to be no cause for government to step in any further. For now, an expanded, unfettered marketplace will do the most for consumer interests.

Locally, we've already seen this pattern in better deals offered with turnover in the cellular phone industry: More players mean that the providers must work harder to keep customers.

Indeed, the imminent entry of Clearwire is a hopeful sign that Hawai'i is being recognized as an attractive market — and that will surely benefit consumers over the long haul.